Monument Sanitation District, June 21 – Board hears audit report

District finances in good shape
Sewer line needs attention
Executive session

By Jackie Burhans and James Howald

At its June meeting, the Monument Sanitation District (MSD) board heard an audit report of the district’s 2022 budget. General Manager Mark Parker discussed the need to repair a sewer line running under Highway 105. The meeting ended with an executive session.

District finances in good shape

Derek Watada, an auditor from Olson, Reyes & Sauerwein LLC, told the board that as part of his audit process he worked with district staff to understand financial processes and tested them. He said the district’s books are clean, requiring only a few minor adjustments. The district’s financial statements are materially accurate, he said.

Watada said the district’s assets increased by $1.7 million over 2021. Tap fees generated $1.9 million in cash flow in 2022, an indicator of Monument’s rapid growth. He mentioned $200,000 in receivables, most of which is uncollected user fees, $60,000 of which are delinquent. A single commercial account owes $55,000 of the delinquent fees, he said.

Watada pointed out a new line item in the audit report: net pension assets. He explained this line resulted from the fact that Colorado Public Employees’ Retirement Association, which had been underwater, is now in a position where future payouts are less than its balance. Previously, MSD’s audits had shown a pension liability, but with PERA’s return to financial health the current report shows an asset instead. MSD’s previous audit showed total liabilities of $400,000; that total is now $275,000, Watada said, primarily due to the new pension asset.

Watada said MSD’s net position, which represents equity in the district’s infrastructure, had increased by $1.9 million in the last year.

He ended his presentation by commenting that the tap fees from over 200 new accounts were the primary driver of the year’s financial performance.

The board voted unanimously to approve the audit report and to file it with the state.

In his discussion of the financial reports for May, Parker pointed out that an increase in gas prices had raised the amount spent on utilities. Director William Morgan pointed out that interest income for the district had increased due to the higher interest rates.

The month’s financial reports were approved unanimously.

Sewer line needs attention

Parker said a sewer line that serves the Conoco gas station, the McDonald’s restaurant, and Jarrito Loco has been discovered to have portions that have sunk and are causing problems. The line runs under Highway 105 and is next to Taco Bell’s drive-through on the west side of the highway. Parker said he thought the problems resulted from poor installation. The line is installed 14 feet deep, making the repair more difficult, Parker said. In the short term the line can be cleaned, but repairing it properly could result in interruptions to business, he said.

Executive session

The meeting ended with an executive session to discuss the general manager’s performance review.

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Monument Sanitation District meetings are normally held at 9 a.m. on the third Wednesday of the month in the district conference room at 130 Second St., Monument. The next regular meeting is scheduled for July 19, 2023. See https://colorado.gov/msd. For a district service map, see https://colorado.gov/pacific/msd/district-map-0. Information: 719-481-4886.

Jackie Burhans can be reached at jackieburhans@ocn.me. James Howald can be reached at jameshowald@ocn.me.

District finances in good shape

Sewer line needs attention

Executive session

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